Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis
USD/JPY weekly chart, January 07, 2019

The US dollar broke down significantly against the Japanese yen during the week, especially during the flash crash that sliced all the way down to the ¥105 level. This would have been algorithmic trading during a very thin time of day, as Tim Cook suggested that Apple was struggling with the Chinese economy slowing down. This happened after 5 PM EST, which is one of the thinnest times of day. However, this would have created a lot of destruction from a technical standpoint, so I do think that we may get a little bit of a bounce here, but quite frankly I would be very interested near the ¥110 level in shorting this market at the first signs of weakness.

USD/JPY Video 07.01.19

Ultimately, this is a market that has made a significant break down as of late, and I think we will revisit the ¥105 level underneath as it is the bottom of the longer-term consolidation. I don’t know at this point this is going to be easy to deal with, because there are a lot of mixed signals when it comes from the Federal Reserve. Because of this, I think that this pair will continue to be extraordinarily volatile, and although the US dollar has been strengthening against the European currencies, I don’t expect it to do so against the Japanese yen in the uncertain economic environment that we find ourselves in globally, not only due to trade wars, but simple slowdowns.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.